Mumbai: India’s lighting industry growth may slow to 12 to 15% in 2009 as a slowdown in real estate has led to a drop in demand for some household lights, a top industry official said.
“We estimate it to be growing at around 12 to 15%,” Manoj Verma, president of Electric Lamp and Component Manufacturer’s Association of India (ELCOMA), told Reuters late on Tuesday.
The Rs50 billion lighting industry grew at an estimated 18 to 19% last year, he added.
Philips, Bajaj Electricals , Crompton Greaves are the major players in India’s organised lighting market.
The drop in the demand from real estate sector clubbed with the competition from higher wattage compact fluorescent lamps (CFL) has caused a dip in the fluorescent tube lights (FTL) segment.
“In a typical residential complex, what the builder provides, is tube lights in all the service areas, and that’s a very large volume,” Verma said.
Real estate sector is witnessing a demand slowdown as a result of still-high property prices, higher loan rates and a general economic slowdown denting consumer confidence.
Compact fluorescent lamps (CFL) were the fastest growing segment, growing at an estimated 25 to 28%, said Verma, who is also a vice president at Crompton Greaves.
India consumes 200 million units of CFLs and produces about 150 million CFL units annually, while rest of the demand is met through imports, an industry official told Reuters.
The growth in CFL demand has eaten into fluorescent tube light (FTL) market while the ordinary bulbs market was unaffected, Shekhar Bajaj, chairman and managing director of Bajaj Electricals told Reuters.
However, growth in the ordinary bulbs business is nearly flat, adding to the general slowing in the industry, Verma added.
Professional lamps or high intensity discharge lamps such as sodium vapour street lamps, have seen good growth of about 14-15% as infrastructure projects are witnessing good activity, he said.
Market for luminaire -- support system for any lighting -- is growing faster than the lighting, Verma added.